This article first appeared in The Edge Malaysia Weekly on April 1, 2024 - April 7, 2024

Technology company Techna-X Bhd last week terminated two memoranda of understanding (MoUs) — one that the company had signed four years ago and the other, 2½ years ago.

But it begs the question: Why did it take so long?

One of the MoUs was signed in March 2020. Techna-X’s wholly-owned subsidiary Wavetree Technologies Sdn Bhd had entered into an agreement with Top Fruits Sdn Bhd (TFSB) and Mybeecop Sdn Bhd to collaborate and develop a smart modelling farming project via a digitised model for agricultural markets, riding on artificial intelligence-enabled operating models, data analytics and the Internet of Things (IoT) to drive efficiency.

Techna-X said the three companies then decided not to proceed with the collaboration because of a significant difference in perspective and approach in relation to the implementation and development of the AI-enabled operating models.

The other Techna-X MoU that was terminated was with East Nest Borneo Sdn Bhd (ENBSB). Inked in October 2021, the companies had planned to venture into the development of a technology-enabled smart bird houses and caves project on the properties of ENBSB. ENBSB is a bird nest harvester at both traditional caves and custom-built birdhouses, processing and marketing the bird nest products for local and international markets.

Techna-X said the two companies mutually agreed to terminate the MoU as ENBSB had pivoted from its smart bird houses business and is no longer interested in the joint venture.

While an MoU is a non-binding agreement, the signatories of MoUs should agree on a maximum notice period for termination.

In the case of Techna-X, while the termination of the MoUs does not have any material financial impact on the company, it may lead to the perception that the company was making such announcements just to draw investor interest.

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